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In this piece, we will take a look at the top ten hospitality companies in the world. For more companies, take a look at Top 5 Hospitality Companies in the World.
The hospitality industry has started to make a strong recovery from the pandemic-era losses, even though the Russian invasion of Ukraine and soaring inflation dampened the industry sentiment and created new hurdles. A research report from The Business Research Company shares that between 2021 and 2022, the global hospitality market grew from $3.9 trillion to $4.5 trillion at a compounded annual growth rate (CAGR) of 13.9%. This rate is attributable to the aforementioned pent up demand, as the research firm believes that the same industry will grow at a much lower CAGR of 7.4% from 2022 to 2026, to be worth $6 trillion by the end of the forecast period.
Another research report, this time from Market Data Forecast, has a much more optimistic CAGR for the hospitality industry. This research firm estimates that the sector will grow at a whopping 18.5% between 2022 to 2027, and from an initial value of $3.5 trillion to a whopping $4.1 trillion. Alongside an easing in coronavirus restrictions, Market Data Forecast also believes that once commodity prices drop and international travel picks up, the industry will see growing demand which will lead to revenue and capacity utilization rising. Asia Pacific and North America led the market in 2020, as they accounted for a large 70% chunk of the total revenue pie.
Finally, Facts and Factors estimates that the industry was worth $3.9 trillion in 2021 and from then to 2028, it will grow at a CAGR of 10.24% to sit at an estimated $6.7 trillion by the end of the forecast period. However, it diverges from the earlier research reports and notes that Europe was the leading revenue contributor in 2021.
Today's piece will take a look at the largest hospitality firms in the world, and the leading players, Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Las Vegas Sands Corp. (NYSE:LVS), are likely to catch your eye.
Photo by Gio Bartlett on Unsplash
Our Methodology
We scanned the hospitality industry to determine which companies are operating in it and providing services. They were then listed according to market capitalization, from lowest to highest.
Top 10 Hospitality Companies in the World
10. InterContinental Hotels Group PLC (NYSE:IHG)
Market Capitalization as of November 11, 2022: $10.10 billion
InterContinental Hotels Group PLC (NYSE:IHG) is a hotel manager, operator, franchisor, and leaser that is headquartered in Denham, United Kingdom. The firm has a variety of popular brands in its portfolio, such as the Holiday Inn chain, Staybridge Suites, and Atwell Suites. It operates close to 6,000 hotels all over the globe.
InterContinental Hotels Group PLC (NYSE:IHG)'s global revenue per available room (RevPAR) jumped to $87.37 in its fiscal third quarter, growing by 28% annually and 3% over 2019 levels. This was aided by inflation, as the firm's average daily rate of $129 grew by 13% annually and by 11% over 2019. Additionally, the bulk of InterContinental Hotels Group PLC (NYSE:IHG)'s rooms is in the U.S., where the economic conditions are vastly better than the ones being experienced in Europe.
InterContinental Hotels Group PLC (NYSE:IHG)'s market capitalization sits at $10.10 billion, and Morgan Stanley increased its share price target to GBp 6,100 from GBp 5,900 in October 2022.
Paul Marshall and Ian Wace's Marshall Wace LLP is InterContinental Hotels Group PLC (NYSE:IHG)'s largest investor through an $11 million stake that comes via 208,894 shares.
Hilton Worldwide Holdings Inc. (NYSE:HLT), Marriott International, Inc. (NASDAQ:MAR), and Las Vegas Sands Corp. (NYSE:LVS) are met by InterContinental Hotels Group PLC (NYSE:IHG) in our list of the biggest hospitality chains in the world.
9. Hyatt Hotels Corporation (NYSE:H)
Market Capitalization as of November 11, 2022: $10.29 billion
Hyatt Hotels Corporation (NYSE:H) is an American company that operates its own and leased hotels. The company's facilities include full service hotels, vacation units, condos, and residential units. The company is headquartered in Chicago, Illinois.
Hyatt Hotels Corporation (NYSE:H) has a market capitalization of $10.29 billion which comes through a share price of $96 per share. The shares have remained flat year to date, and they were down significantly in mid July but have see-sawed since then to reverse the losses. This growth is partly attributable to the strong operating performance posted by the firm in its third fiscal quarter, which saw it grow adjusted operating income by $142 million annually and by $89 million over 2019. Additionally, the firm's fee revenue grew by 50% in Q3 2022 over Q3 2019, and its earnings in Americas also exceeded those of 2019, indicating that the firm is now fully on the path to recovering from the pandemic's devastation.
Hyatt Hotels Corporation (NYSE:H) has also reduced its debt to asset ratio of late, and the firm increased its rooms growth outlook for 2022 to 6.5% in November 2022.
Hyatt Hotels Corporation (NYSE:H)'s largest investor is Mason Hawkins Southeastern Asset Management which owns 2.8 million shares that are worth $213 million.
8. H World Group Limited (NASDAQ:HTHT)
Market Capitalization as of November 11, 2022: $12.14 billion
H World Group Limited (NASDAQ:HTHT) is a Chinese company that develops and manages hotels. The firm has more than 20 different hotel brands in its portfolio, and these let its portfolio stand at more than 8,000 hotels and hundreds of thousands of rooms. H World Group Limited (NASDAQ:HTHT) is headquartered in Shanghai.
Since H World Group Limited (NASDAQ:HTHT) is a Chinese company, the firm's coronavirus recovery rate is slower than its global peers. As of October 2022, its RevPAR stood at 90% of pre-coronavirus levels, since the ongoing hide and seek between the Chinese government and lockdowns is dampening economic growth in the region. The RevPAR recovery was helped by daily room rates increasing and H World Group Limited (NASDAQ:HTHT) believes that it will have to raise the rates in Europe to deal with rising inflation.
Daiwa raised H World Group Limited (NASDAQ:HTHT)'s share price rating to Buy from Outperform in October 2022, and reduced the share price target to $34 from $43, basing the decision on China reopening in mid 2023. H World Group Limited (NASDAQ:HTHT) has a $12.14 billion market capitalization.
7. Host Hotels & Resorts, Inc. (NASDAQ:HST)
Market Capitalization as of November 11, 2022: $13.46 billion
Host Hotels & Resorts, Inc. (NASDAQ:HST) is the largest lodging real estate investment trust in the world. The firm has more than 70 properties in the U.S., and it partners with renowned brands such as Hyatt, Sheraton, and Hilton. It is headquartered in Bethesda, Maryland, the United States
Host Hotels & Resorts, Inc. (NASDAQ:HST)'s RevPAR as of the second quarter of this year has grown by a massive 100% annually across all of its locations. The highest RevPAR is in the company's properties in Jacksonville, with an average of $974. The lowest reading is from Houston, which has a value of $175.50. Additionally, the total RevPAR in Maui/Oahu has surpassed 2019 levels, indicating that Host Hotels & Resorts, Inc. (NASDAQ:HST) is recovering well from the coronavirus.
Host Hotels & Resorts, Inc. (NASDAQ:HST) has a $13.46 billion market capitalization.
Israel Englander's Millennium Management is Host Hotels & Resorts, Inc. (NASDAQ:HST)'s largest investor through a $136 million stake that comes via 8.6 million shares.
6. MGM Resorts International (NYSE:MGM)
Market Capitalization as of November 11, 2022: $14 billion
MGM Resorts International (NYSE:MGM) is a renowned hospitality chain that operates casinos, resorts, and hotels primarily in Las Vegas, Nevada. The firm has close to 30 hotels and gaming locations, and it is headquartered in Las Vegas, Nevada, the United States.
MGM Resorts International (NYSE:MGM) is benefiting from the recovery in the Las Vegas Strip, where foot traffic and travel recovery have contributed to an 18% annual growth. The company's BetMGM gaming brand is a leader in the U.S. iGaming industry, and it commands a whopping 10% of the overall total addressable market (TAM) of $1.5 billion, through raking the company $1.5 billion in revenue. Finally, for the first three quarters of this year, MGM Resorts International (NYSE:MGM) has grown its revenue by roughly 50% to $9.5 billion. The growth has been propelled by more room bookings and a growth in food and beverage sales.
MGM Resorts International (NYSE:MGM) has a $14 billion market capitalization. The company is also looking to secure a gaming license in New York and open a new resort in Japan.
MGM Resorts International (NYSE:MGM)'s largest investor is Keith Meister's Corvex Capital which owns 6.6 million shares that are worth $193 million.
Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“MGM Resorts International is a leading global casino and entertainment company. At its recent price of only $30 per share, we believe MGM is valued at a significant discount to our reasonable $50 per share estimate of the sum-of-the-parts value of its business. Further, the company’s domestic operations are valued at a 18% free-cash-flow yield. Paul Salem, Chairman of the Board, recently acquired shares.”
Along with Marriott International, Inc. (NASDAQ:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Las Vegas Sands Corp. (NYSE:LVS), MGM Resorts International (NYSE:MGM) is one of the largest hospitality companies in the world.
Click to continue reading and see Top 5 Hospitality Companies in the World.
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Disclosure: None. Top 10 Hospitality Companies in the World is originally published on Insider Monkey.
